All Forum Posts by: John Fairchild

I currently have a property that is 10acres with a vacant 1940’s 2/1 farmhouse that needs a full rehab. The property is currently zoned R-5 but sits right on the urban growth boundary of the city which means as soon as the boundary moves the property would be sub-dividable.

My question is, should I sell it now and make $500k+ to reinvest in multiple other properties or wait the unknown amount of time for the property to be sub-dividable and potentially make 3-4x? I’m pretty sure I already know the answer but I enjoy hearing other people’s strategies. TIA!!

Hey Warren,
Do you have the fourplex in a LLC? I think that's what bit us. If you have a LLC operating in the city/state they'll want you to have a business license and then pay appropriate taxes.

@Milton Chamberlain

Thanks for the replys! That is how I understand it as well. We have a PM for all our properties and the only time we interact is to approve MX items over $400 or have a question about a statement. Otherwise we're completely hands off. The LLC was formed for strictly asset protection for whatever that's worth. Thanks again!

If I have a LLC and use a property management company for my rentals am I subject to the 1% earnings tax? Or is that considered a "hands off" activity and not taxable? Thanks!

@Andrew Taylor

Same idea. I have 10 acres in Western Washington and I'm thinking about adding RV hookups and renting out pads. Have no idea how to develop that though. Or if I need to change the zoning. It's currently R-5.

Hey guys,

Looking to depreciate two properties on our taxes but our tax attorney can't find the building basis since the property tax is just "assessed value". What are you all using? Thanks!

Hey Judah,

I live in Snoqualmie and I have been thinking the same thing about Ten Trails.  At this point I don't know if I'd be getting in early but still would nice to play the new construction appreciation game.  Did you end up pulling the trigger?  I'll shoot you a PM.  Cheers!